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between monetary policy, employment, and unemployment. According to the obtained estimates monetary policy shocks invoked … lagged, hump‑shaped reactions of output, employment and unemployment in each of the analysed countries. …
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We incorporate a participation decision in a standard New Keynesian model with matching frictions and show that treating the labor force as constant leads to incorrect evaluation of alternative policies. We also show that the presence of a participation margin mitigates the Shimer critique.
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attachment. Exploiting variation in labor market tightness across metropolitan areas, we show that the employment of populations … the employment of less attached workers when the central bank follows an average inflation targeting rule and when the …
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